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In: Advanced Math

Cheetah Copy purchased a new copy machine. The new machine cost $136,000 including installation. The company...

Cheetah Copy purchased a new copy machine. The new machine cost $136,000 including installation. The company estimates the equipment will have a residual value of $34,000. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows:

Year Hours Used
1 2,900
2 1,900
3 1,900
4 3,500

2. Prepare a depreciation schedule for four years using the double-declining-balance method.

CHEETAH COPY
Depreciation Schedule—Double-Declining-Balance
End of Year Amounts
Year Depreciation Expense Accumulated Depreciation Book Value
1
2
3
4
Total $0

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